When Rachel Johnson, owner of Chickadee Farms in Clayton, North Carolina learned Executive Order No. 118 would close restaurants for dine-in service across the state in response to COVID-19, she started to worry what her upcoming harvest season would look like. One month since the order, Johnson said she is not hopeful.
“I sell to restaurants a lot, and I have not hardly sold to any now,” Johnson said. “That’s a big part of my income, and so my fields are just overloaded with produce.”
Johnson’s farm is just one of over 2.2 million farms in the United States facing issues of oversupply and lack of demand amidst the COVID-19 pandemic, according to the U.S. Department of Agriculture. In North Carolina alone, roughly 46,200 farms, 96% of which are family owned like Johnson’s, are facing some consequence.
Americans spent $1.7 trillion on food away from home in 2018, according to the USDA. But as people have started to change the way they eat in response to restaurant closings, turning to grocery stores to fill their needs, some products and their producers have not adjusted.
The implications of these farmers’ struggles are significant, said Nicholas Piggott, a professor at North Carolina State University and expert in agricultural economics.
“When you take a glance at the portfolio of some of the key agricultural commodities futures, it’s very sobering,” Piggott said in a Q&A session with the university’s College of Agriculture and Life Sciences on April 23. “Since the arrival of the coronavirus in mid-January through April 10, nearby futures have plummeted double-digit percentage point losses for most commodities.”
Piggott said the plummeting losses are made more significant because they impact an industry still recovering from various economic and natural disaster hardships over the last 5 years, including a trade war and seasons of adverse weather.
Nationwide, losses due to COVID-19 for local and regional markets are expected to tally up to $1.32 billion from March to May, according to the National Sustainable Agriculture Coalition, an organization that advocates for agricultural policy reform across the country.
Fear of such losses has spurred various forms of aid across the country, including the Coronavirus Food Assistance Program or CFAP, which offers $16 billion in direct support for farmers and ranchers impacted by COVID-19, according to the USDA. The program also includes an additional $3 billion to purchase produce directly from local and regional distributors.
However, the effectiveness of the aid package has been debated by industry leaders, including Eric Deeble, policy director of NSAC.
“The Secretary’s plan for direct farm aid as outlined tonight lacks critical details to confirm whether it will actually reach all who need it,” Deeble said in a statement issued on April 17.
Meanwhile other organizations, including the non-profit Feeding America, have expressed support for the program.
“We are still examining the details, but this effort has the potential to be a significant food resource for people facing hunger,” said CEO Claire Babineaux-Fontenot, in a statement on April 17. “We look forward to working closely with USDA on how to most efficiently operationalize the plan in the coming days.”
The opinions of farmers across North Carolina also vary. Ellen Pace, of Pace Family Farms in Archer Lodge, North Carolina said the government aid was adequate, but not appropriate for the various kinds of agricultural operations in the state.
“An agritourism farm is going to be different than a 3,000-acre row crop farm in eastern North Carolina,” Pace said. “So, it’s hard to do a one size fits all, but I think that you have to do the best with what you got.”
Delores Cox, of Cox Brothers Farms, a hog farm in Monroe, North Carolina, said despite her farm’s own struggle with plunging prices, she does not believe the government should offer farmers aid.
“I figure everyone otta’ handle their own their own problems,” Cox said. “We’re all in a boat we don’t want to be in.”
Meanwhile, Johnson, said she has been scrambling to explore other avenues for extra revenue. One service, a new farm stand, has been moderately successful.
“I grow some things that are a little bit different, and so, retail customers don’t really know what bronze fennel is,” Johnson said. “I think there might be a silver lining to the farm stand thing, but it’s not even a drop in the bucket to what I would make off of restaurants.”
Johnson also said since applying for the Payroll Protection Program, a part of the $2.2 trillion CARES Act passed in March, she has not received any money.
“I’m so busy right now that it’s like I don’t have time to sit down and fill out a bunch of forms,” Johnson said. “I’m not super hopeful, but I’ll do my best and try.”
Yet, as farmers like Johnson struggle, others like Shannon Garner at Garner Farms, a strawberry farm in Newport, North Carolina, said they are doing well.
“It has been overwhelming,” Garner said. “We’re not usually real swamped during the day, but every day has been busy.”
Garner said she would attribute the larger crowds to the shortages of produce in grocery stores and said one of the largest struggles at her farm has been maintaining social distancing guidelines.
“We have to the limit the number of people, so we take appointments and that’s a lot more cumbersome, and people don’t understand,” Garner said.
But, she admits it is a good problem to have.
Meanwhile, Johnson said she thinks she has found a bright spot amidst all the uncertainty.
“I think the positive side of the coronavirus is people are looking for a lot more local food now, and they’re more aware of where their food comes from,” Johnson said. “I have seen that happen way more.”
Note: Some names have been edited for privacy.